Japan's Nikkei 225 index closed 4.6% higher at 72,366.34, marking a record closing high as investors responded positively to Micron Technology's optimistic AI-related forecast. According to The Economic Times, the Topix rose 1.33% to 4,016.47, with the broader market showing strong participation as 66% of the more than 1,500 stocks on the Tokyo Stock Exchange's prime market rose. The rally was primarily driven by Micron's announcement of quarterly profit and revenue forecasts well above expectations, with the company reporting that customers had committed $22 billion to secure memory chip supply for AI applications. As Takamasa Ikeda, senior portfolio manager at GCI Asset Management, noted, "The Nikkei's sharp gain is simply due to Micron's earnings."
The tech rally was particularly strong in semiconductor stocks, with Tokyo Electron's shares gaining 7.78% and Advantest's shares jumping 15% in Asian trading. In South Korea, Samsung Electronics' shares gained 5.4% and SK Hynix leaped 11.6%. According to market reports, the surge was attributed to positive earnings from major U.S. chipmakers, with Qualcomm announcing a new computer chip for data centers called Dragonfly C1000 CPU that Meta plans to use. The strong performance in chip stocks reflects renewed investor confidence in the semiconductor sector following the positive earnings announcements, with Micron serving as a key supplier for Nvidia AI processors alongside South Korean chipmakers.
SoftBank Group reversed course to jump 8% on Thursday, leading the broader AI-related stock rally. As Daisuke Hashizume, senior strategist at Daiwa Securities, explained, "Investors tried to lock in profits in technology stocks in the previous session ahead of Micron earnings, but they scooped up the shares today, and SoftBank Group was one of them." The surge extended beyond traditional chipmakers, with AI-data centre materials makers Murata Manufacturing and Taiyo Yuden climbing 7.21% and 11.2% respectively. Memory chipmaker Kioxia advanced 12.27%, reflecting the broad-based optimism around AI infrastructure demand. According to Business Standard, strong gains were recorded by Kioxia Holdings, Tokyo Electron, Advantest, Taiyo Yuden, and Murata Manufacturing as chipmakers and AI-related stocks led the rally.
While tech stocks led gains, other regional markets showed more modest performance. Taiwan's Taiex climbed 0.8% and India's Sensex was up 0.6%, while China's Shanghai Composite index picked up 0.4% to 4,125.76. However, Hong Kong's Hang Seng dropped 1.4% to 23,090.27, and Australia's S&P/ASX 200 shed 0.5% to 8,768.20. The mixed performance across Asian markets reflects varying investor sentiment and sector-specific dynamics, with technology stocks benefiting from the positive chip earnings while other sectors faced pressure, particularly energy-related stocks which fell after oil prices extended declines. As reported by Business Standard, sentiment was further supported by lower oil prices, as progress in US-Iran peace talks eased concerns over energy costs for Japan's import-reliant economy.
Oil prices experienced significant declines, with Brent crude falling more than $1 to bring prices closer to where they were before the war with Iran began. According to Associated Press, Brent crude fell 3.8% to $73.87 a barrel, while U.S. crude prices fell 3.9% to $70.34 a barrel. The decline came as the U.S. and Iran negotiate a possible end to their war, with oil companies having some of the biggest losses as prices fell. Exxon Mobil fell 2% and Chevron lost 2.6%, reflecting the impact of geopolitical developments on energy markets. The mining sector dropped 3.18%, with *Inpex down 3.35%**, while oil refiners fell 1.38%, as reported by The Economic Times.
